Databricks' $1 billion acquisition of Neon highlights how serverless PostgreSQL has become essential for agentic AI development.

Databricks acquires Neon to integrate its serverless Postgress database, enabling AI agents to deploy scalable, fast-provisioning data workloads.

Databricks said on Wednesday it would buy database startup Neon in its latest deal valued at about $1 billion, aiming to strengthen its analytics platform with technology that can help businesses develop and use artificial intelligence agents more easily.